Calculator
Terminal Value Calculator
Live, side-by-side Gordon Growth and Exit Multiple calculator. No email, no signup, no result throttling. Defaults are illustrative and not drawn from any real company.
Inputs
5
3y10y
9.00%
5%15%
Gordon Growth inputs
2.50%
0%5%
Exit Multiple inputs
10.0x
4x25x
Gordon Growth
FCF * (1+g) / (WACC - g)
Terminal value
$1.9B
Present value of TV
$1.2B
Terminal CF: $123.0M | Spread: 6.50%
Exit Multiple
EBITDA * exit multiple
Terminal value
$2.0B
Present value of TV
$1.3B
Implied g (vs Gordon): 2.83%
Cross-check
The exit-multiple terminal value is 5.69% above the Gordon Growth terminal value. If the two methods diverge by more than 15 to 20 percent, one of the assumptions is doing most of the work and you should revisit g, the exit multiple, or WACC.
Calculation walk-through
Gordon: $120.0M * (1 + 2.50%) / (9.00% - 2.50%) = $1.9B
Gordon PV: $1.9B / (1 + 9.00%)^5 = $1.2B
Exit: $200.0M * 10.0x = $2.0B
Exit PV: $2.0B / (1 + 9.00%)^5 = $1.3B
Illustrative calculator, not investment advice. Defaults are not based on any real company. See the methodology page for formula derivation, source citations, and assumption guidance.
How to read the output
The cross-check is the point of the side-by-side view
Direct answer
Gordon Growth tells you what terminal value the perpetuity growth-rate logic implies. The exit multiple tells you what today's market would pay for that terminal EBITDA. If the two disagree by more than 15 to 20 percent, the most likely culprit is either an unrealistic perpetuity growth rate or an exit multiple imported from a comp set that does not match the steady-state economics of the target.
Implied perpetuity growth from an exit multiple
g = (TV * WACC - FCF) / (TV + FCF)
Solve Gordon Growth for g given TV = EBITDA * exit-multiple. The calculator above shows this implied g live.